Coinbase Review: Pros, Cons & All You Need to Know

The largest U.S-based cryptocurrency exchange, Coinbase offers access to over 100 cryptocurrencies. It’s one of the most popular cryptocurrency exchanges in the world with over 89 million verified users.

But is it the right crypto wallet for you? That depends on your specific needs. Everyone’s looking for different qualities in a crypto wallet. So we can’t say for sure if Coinbase, or any other wallet for that matter, is the right fit for you. Only you can decide if a wallet is ideal for you because no one knows what you need better than yourself. To find out whether Coinbase is the right crypto wallet for you, read our comprehensive review and decide for yourself.

Is Coinbase Legal and Safe?

Whether Coinbase is legal for you depends on the area of your residence. You can read the entire list of areas where Coinbase is legal right here.

As far as safety is concerned, Coinbase is among the safest cryptocurrency exchanges in the world. They take extensive security measures to ensure your account is as safe as possible. That being said, security is ultimately a shared responsibility. No matter how safe a system is, your account may still get hacked if you don’t take the following safety measures:

  • Use a strong password that’s not easy to guess.
  • Use 2-FA (two-factor authorization) on your account.
  • Keep your email protected.
  • Bookmark Coinbase on your browser and only use that web address. If you get an email that’s addressed to you by Coinbase, check the link to ensure it’s not a fake version trying to steal your account information.
  • Protect your cloud storage data.

How Does Coinbase Work?

The interface of Coinbase is pretty simple. Once you’re signed in, all you have to do is select the “buy/sell” option that’s located on the upper right-hand side. Then, click the “Buy field” option to select the asset you’d like to purchase. Enter the amount you’d like to buy denominated in your local currency. Once the amount is entered, just select your payment method and that’s it.

How Does Coinbase Make Money?

Coinbase makes money in a lot of ways. To name a few, they make money from the crypto trades that take place on their platform, transaction fees on the Coinbase debit card, the spread when converting to fiat currency, and of course, staking.

Who Can Use Coinbase?

As long as you reside in an area where Coinbase is legal and you’re over 18 years of age, you can use Coinbase. They really have no other criteria for joining. So basically, anyone can join.

What Can You Trade On Coinbase?

Coinbase offers access to one of the widest ranges of cryptocurrencies of any exchange on the internet. You can buy, sell, or hold the following cryptocurrencies on the Coinbase platform:

  • Bitcoin (BTC)
  • Ethereum (ETH
  • USD Coin (USDC)
  • Dash (DASH)
  • Dogecoin (DOGE))
  • Bitcoin Cash (BCH)
  • Aave (AAVE)
  • Cardano (ADA)

Those are just some of the cryptocurrencies that Coinbase supports. As we mentioned, the total number of cryptocurrencies you can trade on their platform is over 100. You can find the entire list here. On top of the current tokens supported on their platform, they are regularly adding new cryptocurrencies as well.

How to Deposit Money In Coinbase?

Here’s a step-by-step process for depositing money on Coinbase:

  1. Go to pro.coinbase.com/trade.
  2. Select the “Deposit” option, which will be located on the left-hand column under “Wallet Balance”.
  3. Select your currency in the “Currency Type” field.
  4. Click on the “Bank Account” option and then select “Add Account”.
  5. Take the steps required to verify your bank account.
  6. Once your account is verified, go back to the beginning and do steps one to four once again. But this time, instead of the “Add Account” option, select the “Select Account” option.
  7. Type the amount of money you want to deposit and click on “Deposit”—and that’s it.

How to Withdraw Money from Coinbase?

Here’s a step-by-step process to withdraw money from your Coinbase account:

  1. Go to pro.coinbase.com/trade.
  2. Select the “Withdraw” option, which will be located on the left-hand column under “Wallet Balance”.
  3. Select your currency in the “Currency Type” option.
  4. Either select the “ACH Bank Transfer” or “Wire Transfer” tab. Your account will be listed here if it’s verified.
  5. Select the verified account you want to withdraw to from the drop-down menu.
  6. Type the amount you want to withdraw.
  7. Confirm your withdrawal and that’s it.

Coinbase – Fees

Coinbase utilizes a maker-taker fee model. Transactions that provide liquidity (makers) are charged different fees than transactions that take liquidity (takers).

Pricing TierTaker FeeMaker Fee
$0-10K0.50%0.50%
$10K-50K0.35%0.35%
$50-100K0.25%0.15%
$100K-1M0.20%0.10%
$1M-10M0.18%0.08%
$10M-20M0.18%0.08%
$10M-20M0.15%0.05%
$50M-100M0.15%0.05%
$100M-300M0.10%0.02%
$300M-500M0.08%0.00%
$500M-750M0.06%0.00%
$750M-1B0.05%0.00%
$1B-2B0.04%0.00%
$2B+0.04%0.00%

One thing to note here is that fees are calculated based on the current pricing tier you are in when the order is placed—not on the tier you would be in after a trade is completed. Furthermore, your fee tier is recalculated every hour and updated according to your total trading volume.

Insightful Tips for Using Coinbase

Here are three insightful tips from successful traders on the Coinbase platform.

  1. Set Price Targets for Selling: Coinbase gives you the option to set a selling price. If and when that price becomes true in the market, your cryptocurrency will be automatically sold. Doing this will help prevent you from becoming greedy and holding on to your coins for too long.
  2. Try Swing Trading: In a nutshell, swing trading is buying a cryptocurrency when it experiences a sudden drop and then selling it for a small amount of profit such as five to ten percent. This strategy has worked well for many people because the market usually recovers.
  3. Avoid FOMO: Fear of missing out (FOMO) is a real problem. You never want to let FOMO get the best of you and buy a token when it’s at its peak. When a coin is skyrocketing, chances are its value is inflated and its price will drop down pretty soon.

The Most Noteworthy Pros and Cons of Coinbase

Like any other platform, Coinbase has multiple pros and cons, among which the following are the most noteworthy.

The Top Pros of Coinbase

Here are the top four pros of the Coinbase platform:

  1. It has a user-friendly interface that you can familiarize yourself with within no time at all.
  2. The platform supports over 100 cryptocurrencies, giving you access to trade a wide variety of tokens.
  3. Coinbase offers ways to earn cryptocurrencies by using their platform. Some of their best offers include making interests on eligible balances and getting a small amount of a new currency through Coinbase Earn.
  4. Coinbase has a Pro version that any user can switch to. It’s a more advanced trading platform with more features and lower fees.

The Worst Cons of Coinbase

There are three main cons to the Coinbase platform:

  1. The transaction fees charged on this platform are considered by many to be too high.
  2. There have been hundreds of complaints about their customer service. Their support team is not among the best and they often fail to clear up the problem that their users are having.
  3. While Coinbase supports an impressive list of cryptocurrencies, a lot of people believe that there are still too many altcoins missing.

The Most Frequently Asked Questions About Coinbase

Here are answers to some of the most frequently asked questions about Coinbase that haven’t already been answered in this guide.

1. Is there a Coinbase Pro App?

Yes, there is a Coinbase Pro app that’s available for both iOS and Android on the Apple App Store and the Google Play store, respectively.

2. How Many Coinbase Accounts Can I Have?

An individual can only have one Coinbase account. Violating this policy can lead to all accounts getting banned.

3. Is there a Minimum Deposit and Withdrawal Amount On Coinbase?

Yes, Coinbase has a minimum deposit limit of $50 and a minimum withdrawal limit of anything over $0.55.

4. Is Coinbase Wallet Cold Storage?

No, the Coinbase wallet is hot storage.

5. Is Coinbase Prohibited In My Region?

You can find a comprehensive answer to your question here.

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